Case 2:18-cv-00321-JLR Document 125 Filed 10/29/18 Page 1 of 5
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`The Honorable James L. Robart
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`UNITED STATES DISTRICT COURT
`WESTERN DISTRICT OF WASHINGTON AT SEATTLE
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`SRC Labs, LLC, et al.,
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`v.
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`Microsoft Corporation,
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`Plaintiffs,
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`No. 2:18-cv-00321-JLR
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`Defendant.
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`DECLARATION OF BRANDON
`FREEMAN IN OPPOSITION TO
`DEFENDANT'S MOTION TO STAY
`CASE PENDING INTER PARTES
`REVIEW
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`Brandon Freeman, under penalty of perjury under the laws of the State of Washington,
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`declares that the following is true and correct:
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`1.
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`I am President and Manager of SRC Labs, LLC ("SRC Labs") and Chairman of
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`DirectSream, LLC ("DirectStream"). DirectStream is the operating company that interfaces
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`with customers and government agencies to develop technology and provides platform computer
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`services to government contractors and clients in the private sector. SRC Labs is a licensing
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`company. DirectStream and SRC Labs are sister companies, which are both owned by FG-SRC,
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`LLC. They operate in tandem. FG-SRC is responsible for the management and funding of both
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`SRC Labs and DirectStream. Financial burdens on SRC Labs directly affects DirectStream's
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`ability to fund research and development and operations. FG-SRC's capital is limited.
`DECLARATION OF BRANDON FREEMAN IN OPPOSITION TO
`KELLER ROHRBACK L.L.P.
`DEFENDANT'S MOTION TO STAY CASE PENDING INTER
`1201 Third Avenue, suite 32oo
`TEL~e:~~~N;f,A<ig~~~-i~~12eoo
`PARTES REVIEW (2:18-cv-00321-JLR)- 1
`FACSIMILE: (206) 623-3384
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`

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`Case 2:18-cv-00321-JLR Document 125 Filed 10/29/18 Page 2 of 5
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`2.
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`SRC Labs entered into an exclusive license agreement with the Saint Regis
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`Mohawk Tribe that gives SRC Labs a right to sublicense the patents in suit.
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`3.
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`DirectStream is a small emerging company. Prior to 2016, DirectStream was
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`known as SRC Computers. Its revenue stream since 2002 has been approximately $30 million
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`dollars. SRC Computers and DirectStream have spent over $100 million on research and
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`development related to the patents-at-issue. It has developed FPGA (Field Programmable Gate
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`Arrays) computing services technology and provides FPGA platform computing services to its
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`customers.
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`4.
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`DirectStream is a competitor of Microsoft, to the extent any small emerging
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`company can compete with the largest computer software company in the world. Both
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`DirectStream and Microsoft provide FPGA-based reconfigurable computing hardware and
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`services to companies.
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`5.
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`Specifically, Microsoft is using infringing FPGA-based reconfigurable computing
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`technology in its datacenters that power its Azure cloud services. Microsoft's clients refactor
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`and reconfigure their networks and applications to work with Microsoft's cloud computing
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`technology. For example, if a global payment network adopts Microsoft's cloud computing
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`services for its clients to access its network and if Microsoft is allowed to continue to use
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`Plaintiffs' patented technology, DirectStream and Plaintiffs will be irreparably harmed because
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`potential customers of DirectStream, such as a global payment network, will already have
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`refactored and configured their systems and applications to work with Microsoft's cloud
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`computing services, and will not change their networks to adapt to DirectStream's platform.
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`DECLARATION OF BRANDON FREEMAN IN OPPOSITION TO
`DEFENDANT'S MOTION TO STAY CASE PENDING INTER
`PARTES REVIEW (2:18-cv-00321-JLR)- 2
`
`KELLER ROHRBACK L.L.P.
`1201 Third Avenue, Suite 3200
`Seattle, WA 98101-3052
`TELEPHONE: (206) 623-1900
`FACSIMILE: (206) 623-3384
`
`

`

`Case 2:18-cv-00321-JLR Document 125 Filed 10/29/18 Page 3 of 5
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`6.
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`Similarly, companies use the FPGA technology for processing machine learning
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`models, and use Microsoft's Azure cloud services for deploying machine learning models for
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`real-time artificial intelligence. These same companies are potential customers ofDirectStream.
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`7.
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`Both Microsoft and DirectStream provide computing services to the Department
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`of Defense and are competitors for government contracts requiring FPGA technology.
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`DirectStream provides FPGA platform computing services to the Department of Defense and the
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`Intelligence Community, including the National Security Agency since 2002. DirectStream has
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`had services and system contracts with the U.S. Airforce, U.S. Army, and U.S. Navy since 2006.
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`Microsoft uses FPGA technology to provide cloud computing service to the Department of
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`Defense and the U.S. Navy through its Azure product.
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`8.
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`DirectStream currently provides its FPGA-based reconfigurable cloud computing
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`services to private sector companies, such as Lockheed Martin and Boon Logic. Microsoft uses
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`FPGA technology to provide cloud computing services to the private sector through its Azure
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`product. Thus, DirectStream and Microsoft are competitors in providing cloud computing
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`services to private customers using FPGA technology.
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`9.
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`DirectStream will continue to experience a loss of goodwill and market share if
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`Microsoft is allowed to continue infringing Plaintiffs' patents to compete with DirectStream.
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`Microsoft's infringe and delay strategy - filing of serial IPRs, appeals and other actions in the
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`USPTO, such as post-grant reviews and interferences- may force DirectStream out of business.
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`SRC Labs has already received estimates that the cost to defend the IPRs Microsoft has currently
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`filed will exceed $700,000 just to get preliminary responses filed and basic pre-hearing
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`discovery.
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`DECLARATION OF BRANDON FREEMAN IN OPPOSITION TO
`DEFENDANT'S MOTION TO STAY CASE PENDING INTER
`PARTES REVIEW (2:18-cv-00321-JLR)- 3
`
`KELLER ROHRBACK L.L.P.
`1201 Third Avenue, Suite 3200
`Seattle, WA 98101-3052
`TELEPHONE: (206) 623-1900
`FACSIMILE: (206) 623-3384
`
`

`

`Case 2:18-cv-00321-JLR Document 125 Filed 10/29/18 Page 4 of 5
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`1 0.
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`As a small company, DirectStream is reliant upon access to capital to fund its
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`contracts and continued operations. If it is not able to exclusively use its patents on the FPGA
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`technology, the company is less valuable, and may be unable to secure adequate financing to
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`fulfill its contracts.
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`11.
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`Based on the foregoing, I believe a stay in this case will erode DirectStream's
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`market share and goodwill and could possibly destroy the company.
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`I declare under penalty of perjury that the foregoing is true and correct.
`Executed thist"'.j - day of October, 2018 in ---.c~~=--&L-'--/-'---~=~-><L_ ___ , fK
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`~/..
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`DECLARATION OF BRANDON FREEMAN IN OPPOSITION TO
`DEFENDANT'S MOTION TO STAY CASE PENDING INTER
`PARTES REVIEW (2:18-cv-00321-JLR)- 4
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`KELLER RO H RBA C K L.L.P.
`1201 Third A v enue , Suite 3 200
`Seattle , WA 98101 - 3052
`TELEPHONE : ( 20 6) 623- 190 0
`FA C SIMILE : ( 206 ) 6 2 3 -338 4
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`

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`Case 2:18-cv-00321-JLR Document 125 Filed 10/29/18 Page 5 of 5
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`CERTIFICATE OF SERVICE
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`I hereby certify that on this 29th day of October, 2018, I electronically filed the foregoing
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`with the Clerk of the Court using the CM/ECF system, which will send notification of such filing
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`to all counsel of record.
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`s/Mark A. Griffin
`Mark A. Griffin, WSBA #16296
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`4816-4262-6681, v. 3
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`DECLARATION OF BRANDON FREEMAN IN OPPOSITION TO
`DEFENDANT’S MOTION TO STAY CASE PENDING INTER
`PARTES REVIEW (2:18-cv-00321-JLR) - 5
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`KELLER ROHRB ACK L.L.P.
`1201 Third Avenue, Suite 3200
`Seattle, W A 98101-3052
`T E L E P H O N E : ( 2 0 6 ) 6 2 3 - 1 9 0 0
`F A C S I M I L E : ( 2 0 6 ) 6 2 3 - 3 3 8 4
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